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Cash Flow Statement and Balance Sheet Data

The Sage Corp. prepared for 2005 and 2004, the following balance sheet data:

2005 2004

Cash............................................................................ 87,375 63,750

available-for-sale securities (not cash equivalents)............17,250 105,000

accounts receivable........................................................90,000 86,250

merchandise inventory..................................................187,500 163,500

prepaid insurance............................................................1,125 1,500

Land, Buildings, and equipment.......................................1,378,875 1,087,500

Accumulated depreciation..............................................(558,750) (498,750)
Total........................................................................$1,203,375 $1,008,750

Accounts Payable..........................................................153,375 236,250

Salaries Payable.............................................................18,750 26,250

Notes payable-bank (current).........................................37,500 150,000

Bonds payable..............................................................375,000 0

Common stock.............................................................600,000 600,000

Retained earnings (deficit).............................................18,750 (3,750)
Total.......................................................................$1,203,375 $ 1,008,750

Addtional information:
(a) sold available-for-sale securities (not cash equivalents) costing $87,750 for $90,000

(b) Equipment costing $18750 with a book value of $3,750 was sold for $4,500.

(c) Issued 8% bonds payable at par, $375,000.

(d) Purchased new equipment for cash, $310,125.

(e) Paid cash dividends of $22,500 during the year.

(f) Net Income for 2005 was $45,000.

(g) Proceeds from the notes payable were issued for operating purposes.

Prepare a cash flow statement for Sage Corp. for 2005, using the indirect method.

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Cash flows from operating Activities:
Net Income $45,000
Non-cash ...

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